In synch: Canada's Pacific Stratus and Petro Rubiales are to link up
Canadian Colombia pair team up
Canada-based Colombian players Petro Rubiales and Pacific Stratus said today they would merge in a combined unit to be called Pacific Rubiales Energy.
Under the plan Pacific Stratus will become a wholly-owned unit of Petro Rubiales. The company said in a statement the combined unit would be worth about C$2.5 billion (US$2.65 billion), with daily production of more than 30,000 barrels of oil equivalent.
The companies would also share exploration prospects in Pacific Stratus’s 100%-owned La Creciente block in Colombia, as well as in the country’s Arauca and Quifa and in new areas in northern Peru.
The merged company will be among the largest oil and gas players on the Toronto Stock Exchange.
Under the deal, Pacific Stratus shareholders will receive 8.85 common shares of Petro Rubiales for each Pacific Stratus share held.
The deal is expected to close in the first quarter of next year.